Information systems

Basic concepts

By C.Nagalakshmi
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 Topics covered

Concepts
 Understanding Data & Information

 System concepts

 Business as a system

 Control systems

 Use of Information Technology

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 Data versus Information

Monthly Sales Report

for West Region
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 What is an Information
System?
 What is Information?
 Processed output that is:
 Organized

 Meaningful

 Useful.

 What is Data?
 Random facts that are accepted as input
to a information system and are stored
or processed.

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 Characteristics of
Information
 It supports actions and/or business
decisions
 Perishable commodity
 Frequency
 Offset
 Response time
 Consumable commodity

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 Characteristics of Information
contd
 Information is produced ,not stored

Information = Data + processing

 Changes in information
 Information is conveyed through outputs

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 Characteristics of
 Reliable
Information
 Relevant
 Timely
 Complete
 Understandable
 Verifiable
 Valuable
 Value = Difference between the benefit
produced by the information (usually in the
form of improved decisions) and the cost of
producing it.
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Attributes of Information
Quality

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 What is a System?
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems
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 What is a System?
 A system is an entity consisting of
two or more interrelated
components or subsystems that
interact to achieve a goal.

 A computer-based system is
comprised of the equipment,
programs, data, and procedures
necessary to complete a given task.

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 What is a System?
 The systems concept refers to the
evaluation of alternative courses of
action from the standpoint of the
system as a whole rather than that of
any particular sub-system.

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 What is a System?

 An integrated system combines

previously separated sub-systems.
 Eliminates duplication of storage and
processing, both manual and
computer.
 For example integrating the separate
processes of preparing customer
statements, collecting cash from
customers and the maintenance of
accounts receivable records.
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 Open and closed systems
 Systems can be classified as either open or closed.
 An open system is an entity that exchanges
materials, energy or information with its environment
or other closely coupled systems.
 A closed system is sealed from its environment; its
boundary is impermeable. Since closed systems
cannot replenish resources, they will eventually
become disorganized and, because of increasing
entropy, collapse.
 Open systems have the potential to prolong their
existence in a stable environment. To survive in a
dynamic environment, a system must be open and
adaptive to change

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 What is an Information
System?
 An Information System is an
organized means of collecting,
entering, and processing data and
of storing, managing, controlling,
and reporting information so that
an organization can achieve its
objectives and goals. Combines
previously separated sub-systems.

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 Information systems
 Formal Information Systems.
 Informal Information Systems.
 Manual Information Systems.
 Automated Information Systems.
 Computer-based Information
systems.

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 Components of an
Information System

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Major Roles of Information
Systems

Support of
Strategic
Advantage

Support of
Managerial
Decision Making

Support of
Business Operations

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 History of the role of
Information Systems
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce

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 The Internetworked -Business
The Internet
Suppliers and Other Business Partners Company
Boundary
Procurement, Distribution, and Logistics
Extranets

Manufacturing Accounting,
Engineering &
and Finance, and
Research
Production Management

Intranets

Advertising Sales Customer Service

Extranets

Consumer and Business Customers

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 Types of Information
Systems
Information Systems

Operations Management
Support Support
Systems Systems

Transaction Process Enterprise Management Decision Executive

Processing Control Collaboration Information Support Information
Systems Systems Systems Systems Systems Systems

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 Other Categories of
Information Systems
Expert
Expert Systems
Systems

Knowledge
KnowledgeManagement
Management Systems
Systems

Functional
FunctionalBusiness
BusinessSystems
Systems

Strategic
StrategicInformation
InformationSystems
Systems

Cross-Functional
Cross-FunctionalInformation
Information Systems
Systems

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